Eden Research, which is still awaiting approval for its natural pesticides,
has launched a dog deodorant to boost sales

Scientists who have spent seven years waiting for the European Union to approve the sale of Eden Research’s natural pesticides to the agricultural industry have today resorted to launching dog deodorant to generate much-needed sales.

The Aim-listed company, set up to develop technology to prevent grape rot using natural products rather than chemical insecticides, is expecting to receive the thumbs-up from the EU later this year. In the meantime it has announced the sale of its first commercial product – perfume for pets.

The “encapsulation technology” uses natural defence mechanisms of plants and releases the scent slowly over 18 hours – a move that could revolutionise the perfume industry by making fragrance smell for longer. The active ingredients also soothe irritated skin and help give a glossy coat.

The animal toiletries will initially be distributed in France by Laboratoires Agecom under its E Lotion brand, before being rolled out in other territories.

In partnership with its licensee, TerpeneTech, the Oxford-based laboratory is also developing natural consumer products for ant and cockroach baits, mosquito repellent, dust mites, and environmental sprays.

“The process of seeking approval from the EU for any scientific technology which is used in the human food chain is far more arduous than that for animals,” said a spokesman for Eden Research, which listed on Aim in 2012 in anticipation of EU approval to license its intellectual property.

“Therefore we took the technology designed for agricultural purposes and have adapted it to make odour neutralising products for pets.”

The life sciences firm, chaired by Sir Ben Gill, the former farmer and ex-president of the National Farmers Union, has been developing products, but to date has never sold any publicly.

Eden Research is due to be joined on Aim by a series of small technology businesses all looking to float this year. However, due to the flurry of interest, the cost of listing has risen 10pc over the past year as brokers raise their fees to take advantage of the buoyant market conditions.

New research from accountants UHY Hacker Young has revealed that professional fees paid by companies to brokers for a placing on Aim now account for 9.5pc of all funds raised, up from 8.4pc in the previous 12 months. There were 61 IPOs in 2013 against just 43 in the previous year, also driven by private equity companies that develop many medium- sized businesses with a view to floating them.

“The revival of appetite for Aim IPOs has been some time in coming,” said Laurence Sacker, partner at UHY Hacker Young. “And businesses are focused on seizing the opportunity to get the right valuation for their companies, and if they need to pay slightly higher professional fees to get the float through soon, it is a cost they are prepared to swallow.”